China May Be Secretly Sending Oil To North Korea

Hasan Jamali/Reuters
China is secretly providing North Korea with oil, with shipments over the border either intentionally omitted from its export statistics or broadly identified as aid, according to South Korean intelligence officials.

Customs data released by Beijing indicates that no crude oil went over the border to North Korea in the first nine months of the year, although analysts in Seoul say that such a drastic halt in imports would have played havoc with the North's industrial capability and its military forces.

Instead, analysts point out, industry appears to operating as usual and the military has to be unaffected by any shortages of fuel.

"Without China providing crude oil, the operation of many of North Korea's industrial facilities and vehicles would have been suspended," intelligence sources told Yonhap news agency. "But there have been no such indications as yet."

China's refusal to provide Pyongyang with fuel was interpreted as evidence that Beijing had finally grown weary of the unpredictable and destabilising behaviour of its neighbour and ally.

North Korea's crude oil imports from China since 2007.
Reuters

Beijing has long supported the Kim dynasty in North Korea but constantly cautioned the regime against being over provocative. Kim Jong-un, installed as dictator in December 2011, has chosen to ignore that advice and has carried out an underground nuclear test, launched a rocket into space, fired dozens of ballistic missiles and carried out a series of provocative moves against South Korea.

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In an apparent show of displeasure that was applauded by the international community for putting pressure on the Kim regime, China ostensibly halted oil shipments suddenly in January. Previously, the North imported around 500,000 tons of crude from China every year.

North Korea has been busy in recent months developing new trade and political ties with Russia, with the two nations pushing ahead with the development of industrial zones in the North and a rail link over the border.

South Korean government officials deny that Russia has replaced China as the source of the North's crude oil, pointing out that imports from Russia have come to just 100,000 tons so far this year.